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Share-based payments have become increasingly popular over the years, with many entities using equity instruments or cash and other assets based on the value of equity instruments as a form of payment to directors, senior management, employees and other suppliers of goods and services.
The accounting of share-based payments is an area that remains not well understood and this is evidenced by a number of Interpretations and agenda decisions being issued by the IFRS Interpretations Committee (IFRIC). Considerable care needs to be applied in evaluating the requirements set out in MFRS 2 and other authoritative guidance to increasingly complex and innovative share-based payment arrangements.
This article provides an overview including the objective and scope of MFRS 2.
How we can help
We hope you find the information in this article helpful in giving you some insight into MFRS 2. If you would like to discuss any of the points raised, please do not hesitate to contact us.
